Denise I. Murphy

Denise Murphy is an experienced employment defense lawyer licensed in Massachusetts with an active practice throughout the United States. Her practice areas include sexual harassment claims, discrimination claims, adverse workplace actions, counseling of employers and their employeees, employee handbooks, and training. Ms. Murphy also represents companies and individuals in excecutive compensation negotiations and disputes over covenants not to compete.

Denise Murphy was named to the Top 50 Massachusetts Women Lawyers in 2008, and was named a Super Lawyer in the field of Employment Law in 2007.

An amendment to the Massachusetts Wage Act has businesses–and their lawyers–calling the changes unfair and punitive. What’s the change? Under the amendment passed in April 2008 by the legislature, which went to effect on July 13, 2008, the civil punishment for wage and hour violations is now treble damages, regardless of whether the violation was intentional or not.

Of course every business needs to pay their workers in accordance with the law, which means, among other things, overtime for weeks of over forty hours, with mandatory overtime on Sundays and certain holidays in retail establishments, and vacation and commissions policies that conform with the law. The law already provided for strict damages, including back wages, attorneys’ fees, and sometimes multiple damages for intentional violations. Egregious violations of the law may also lead to criminal penalties.

But multiple damage awards used to vary depending on the culpability of the business. Some violations might result from errors at a payroll processing company or misunderstandings of the law, and a company had the right to plead a good faith defense to charges of violations. The state and federal departments of labor were usually forgiving in such circumstances, giving employers a second chance to mend their ways.

Unfortunately, the law of the land means that every violation will now be treated as a triple damages case.

The lesson for businesses: Time to take a close look at your employment practices. Double check your controls to make sure the wage and hour laws are being followed to the letter! This means double check with payroll companies too.

Contact me if you need to review your compliance with the wage and hour laws. This is a very important area for all employers, and it is wise to invest in prevention to avoid potentially serious fines down the road.